Last Friday, oil prices remained largely stable due to the support of the European economic recovery. However, India expressed concern about a record surge in the number of coronavirus infections.
At 1335 GMT, Brent crude oil fell 2 cents, or less than 0.1%, to $65.38 per barrel, while the U.S. West Texas Intermediate crude oil futures price rose 6 cents, or 0.1%, to $65.38 per barrel. The barrel is $61.49.
Eurozone Purchasing Managers’ Index data in April showed that the recovery was more substantial than expected. More European states began to relax the coronavirus lockdown. France said the school reopened on Monday.
The strong PMI across Europe, a weaker U.S. dollar, and some European countries that plan to relax some restrictions have supported oil prices to a certain extent.
However, Due to the recurrence of infections in India and Japan, India and Japan are the world’s third and fourth-largest oil importers. However, due to the reproduction of diseases in these countries, the weekly losses of both benchmark crude oils exceeded 2%.
Some countries, such as Britain, Canada, the United Arab Emirates, and Australia, have canceled flights from India.
Japan announced new lockdown measures in Tokyo, Osaka, and two other counties on Friday.
Coupled with the optimistic outlook of last week’s economic data in Europe and the U.S., the number of Americans who applied for new requirements for unemployment benefits fell to a 13-month low last week.
Valero, the U.S. refiner, said demand for gasoline and diesel was 93% and 100% of pre-pandemic levels, respectively.
The U.S. Introduces NOPEC Bill; OPEC Is Against It
The U.S. House Representatives passed a bill this week requiring the NOPEC to file a lawsuit against conspiracy to raise oil prices. NOPEC stands for the Organization of Petroleum Exporting Countries. Still, it is not yet certain whether the National Assembly will consider legislation.
However, OPEC encourages its members to cooperate with the U.S. government on the proposed U.S. bill against the organization. It explains that passing the bill may put U.S. interests abroad at risk.
According to OPEC, the bill would bring some disadvantages to the U.S. It could be weakening the immunity principle globally. It could put the U.S. interests overseas in danger, undermine important trade and energy relations between the U.S. and member countries, affecting oil prices.
The bill can increase the risk of volatility of international oil markets, which straightforwardly affects the U.S. oil-producing countries and organizations.